In our most recent alert regarding the Massachusetts Paid Family and Medical Leave Act (PFML), we noted the possibility that the start of employer and employee contributions could be delayed. Earlier this week, state leaders announced a planned three-month delay. On Friday, June 14, the Department of Family and Medical Leave (the department) announced that the Massachusetts Legislature and Governor Charlie Baker have formally adopted the delay, pushing the commencement date for withholding obligations back to October 1, 2019.
This three-month delay will also be reflected in other deadlines associated with the PFML:
- September 30, 2019: All employers in Massachusetts must provide employees with a notice of rights under the new law.
- December 20, 2019: Employers interested in obtaining an exemption from the PFML's contribution requirements must file for the exemption.
- December 31, 2019: Employers will be responsible for remitting contributions for the final quarter of the calendar year through MassTaxConnect.
Additionally, in order to offset the lost rate revenue associated with the three-month delay, the department announced that the total contribution rate has been increased from 0.63% (for up to the first $132,900 of an employee's salary) to 0.75%. This means that the total annual contribution for an employee earning $132,900 or more will be increased from $837.27 to $996.75.
We will continue to monitor developments related to the PFML and will provide additional updates as necessary.
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